May vary from area to area / property type, etc. but basically - in general - all normal day to day operating expenses would be defined as the cost of operating an office building, shopping center, etc. such as janitorial, management fees, maintenance, supplies, elevator service, HVAC, plumbing, electrical repairs and the like, utilities, and similar day to day expenses, as well as taxes, insurance, and a reserve for replacement of items which periodically wear out. Should not include capital expenses such as roof replacement nor expenses associated with the production of income such as leasing commissions and legal fees. May include part - or all - of an employee (s) expenses relative to that particular property - depending on size and if that employee has other properties where his expenses would be pro-rated.
Apr 9, 2011